Taxpayers’ Savings Grants Act Exposed

The Taxpayers' Savings Grants Act was adopted by ALEC's Education Task Force and approved by the ALEC Board of Directors on September 16, 2011. (Accessed on 11/30/2015).

ALEC Bill Text

Summary

The Taxpayers’ Savings Grants Act establishes a program by which willing residents can opt to receive less public funding for their child’s education, in order to take that funding to a private school. The difference in the amount slated for that child and the amount of the Savings Grant will be considered taxpayer savings and not allotted to any other program.

Model Policy

Section 1. {Title.} Taxpayers’ Savings Grants Act

Section 2. {Definitions.}

(A) “Accredited private school” means a school that:

(1) is accredited by an accrediting association recognized by the commissioner to accredit nongovernmental schools in this state; or

(2) has filed an application for accreditation by an accrediting association described by Paragraph (A).

(B) “Eligible student” means a school-age child who resides in the state and who:

(1) is entering kindergarten; or

(2) attended a public school for all of the academic year immediately preceding initial participation in the program.

Section 3. {Basic Elements of Taxpayers’ Savings Grants.}

(A) A parent or legal guardian of an eligible student who agrees to accept reimbursement in an amount that is less than the state average maintenance and operations expenditures per student may receive reimbursement from the state for the tuition paid for the enrollment of the eligible student at an accredited private school in an amount that is the lesser of:

(1) the tuition paid; or

(2) [all or a portion] of the state average maintenance and operations expenditures per student.

(B) Money from federal funds may not be used for reimbursement under this section.

(C) Net savings from the program established under this section shall not be used for any other public program. The Comptroller shall adjust payments in order to reconcile amounts due to all schools within the same fiscal year, or one month after, so that savings accruing within the program are recovered and reallocated to the public schools in the same fiscal year.

Section 4. {Implementation.}

(A) As soon as practicable, but not later than the 45th day after the effective date of this Act, the comptroller, in coordination with the commissioner of education, shall adopt rules to implement the Taxpayer Savings Grant Program, as added by this Act, including rules to prevent fraud in financial transactions under the program and to determine the net savings resulting from implementation of the program. Such regulations shall reconcile payments to all schools within the same fiscal year, or one month after, so that savings accruing within the program are recovered and reallocated in the same fiscal year.

Section 5. {Severability clause.}

Section 6. {Repealer clause.}

Section 7. {Effective date.}

Approved by ALEC Board of Directors on September 16, 2011.